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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: Nasdaq looks at changing its structure Standard

Lead Stories Nasdaq looks at changing its structureBy Telis Demos in New York and Jeremy Grant in LondonThe Financial TimesNasdaq OMX’s board of directors is discussing the possibility of changing Nasdaq’s leadership structure, which could include Robert Greifeld being named chairman in addition to chief executive, people briefed on the discussions said. The discussion comes as NYSE Euronext and Deutsche Börse’s deal appears at risk of being called off due to strong opposition from antitrust regulators in Europe. It is likely to stoke anticipation that Mr Greifeld may be trying to clear a way for a potential merger to capitalise…

JLN Options: VIX Had Smallest Intraday Range Ever! Standard

Lead Stories VIX Had Smallest Intraday Range Ever!Wall Street Sector Selector January 11, 2012 3:44 pmBill Luby: If ever there was a day to be short the volatility of volatility, it was today. In fact, today established a new record for the smallest (in percentage terms) intraday range for the VIX (NYSEARCA:VXX), a mere 1.14%.   For those who are curious (and I know you are out there), the previous record of 1.24% dates from August 29, 2003.http://jlne.ws/zxrm8MTraders’ New Cry: See You in a Week By CHRIS DIETERICH, WSJ.com ‘Short-Term’ Options Bet on a Stock’s Action in a Handful of Days…

A Talk with Mark Abssy, Senior Index & ETF Manager at ISE, on the SPY Bear and Bull Option Overlay Indexes Standard

A Talk with Mark Abssy, Senior Index & ETF Manager at ISE, on the SPY Bear and Bull Option Overlay Indexes On December 5, 2011, the International Securities Exchange (ISE) announced that it had created two new indexes, the ISE SPY Bear Options Overlay Index (VCS) and the ISE SPY Bull Option Overlay Index (VPS). The indexes track the performance of a portfolio of vertical call or put spread strategies based on the SPDR S&P 500 ETF. JLN Options editor Sarah Rudolph spoke with Mark Abssy, Senior Index & ETF Manager for ISE, about how the indexes work, what makes…

JLN Options: CBOE Eyes New Futures On Equities, Bond Yields, Commodities Standard

Lead Stories CBOE Eyes New Futures On Equities, Bond Yields, Commodities By Jacob Bunge, Of DOW JONES NEWSWIRESThe parent of the Chicago Board Options Exchange is exploring ways to broaden its small U.S. futures market with contracts linked to stocks, bond yields and commodities, according to an executive.CBOE Holdings Inc. (CBOE), which runs the largest U.S. options exchange by contract volume, is looking for ways to bulk up in proprietary futures contracts that carry higher trading fees than stock options.The eight-year-old CBOE Futures Exchange does most of its business in futures linked to the CBOE Volatility Index, or VIX, the…

JLN Options: Short-term strategies boost US options trading Standard

Lead Stories Short-term strategies boost US options trading Tom Osborn, Financial news (subscription)10 Jan 2012Record trading in US equity options markets last year was boosted by fund managers increasingly hedging short-term equity positions using short-dated options contracts, according to a report from US research firm Tabb Group, as the US market gears up for another heavy year of trading on the back of volatile cash markets.  Volumes in the US options market reached record levels in 2011, despite flagging slightly in December, with 4.5 billion contracts changing hands across the market’s nine exchanges. That figures represents a 17% rise over…

JLN Options: CBOE Stock Exchange Completes Acquisition of National Stock Exchange Standard

Lead Stories CBOE Stock Exchange Completes Acquisition of National Stock ExchangeCHICAGO, January 9, 2012 – CBOE Stock Exchange (CBSX) announced today that it completed the acquisition of all-electronic National Stock Exchange (NSX) on December 30. The acquisition, approved by the Securities and Exchange Commission, allows CBSX to expand its footprint in the securities exchange space by wholly owning and operating a second separate exchange. Both exchanges will continue to operate separately under their current names and will integrate teams in Chicago and Jersey City, NJ. http://jlne.ws/dqtww6 CBOE Stock Exchange Buys Market in Bid to Diversify Trading Client Roster New York…

JLN Options: CBOE FUTURES EXCHANGE TO LAUNCH SECURITY FUTURES TRADING IN EMERGING MARKETS VOLATILITY INDEX Standard

Lead Stories CBOE FUTURES EXCHANGE TO LAUNCH SECURITY FUTURES TRADING IN EMERGING MARKETS VOLATILITY INDEX CHICAGO – January 6, 2012 — CBOE Futures Exchange, LLC (CFE) announced today that it will launch trading in security futures on the CBOE Emerging Markets ETF Volatility Index (Index ticker: VXEEM; futures symbol: VXEM) on Monday, January 9, pending regulatory approval. The VXEEM Index reflects the implied volatility of the iShares MSCI Emerging Markets Index exchange-traded fund (ETF) (ticker: EEM). EEM options were the eleventh most actively traded option at CBOE in 2011. In addition to hedging emerging markets volatility exposure or making direct…

JLN Options: Options Traders See Higher Volatility Ahead Standard

Lead Stories Options Traders See Higher Volatility Ahead By STEVEN M. SEARS, Barrons.comSavvy options traders are taking advantage of the subdued VIX to buy low-cost protectionOn Thursday, the stock market sent investors a critical message. If you failed to hear it, you missed information that matters more than the mostly rosy prognostications for the stock market in 2012 from Wall Street banks. The message: Volatile volatility is back from winter vacation, and likely here to stay for all of 2012. http://jlne.ws/AqS5Y1 Deutsche Börse Holders See NYSE Deal Chances Fade By ULRIKA DAUER And JACOB BUNGE, WSJ.com With the European Union’s…

JLN Options: Commentary: CBOE BuyWrite Indexes Growing, With Interest from Pension Funds and Institutional Investors Standard

CBOE BuyWrite Indexes Growing, With Interest from Pension Funds and Institutional Investors The Chicago Board Options Exchange recently compiled the 2011 year-end returns for its BuyWrite and PutWrite indexes, which were higher by percentage change than some of the biggest U.S.-based stock indexes. JLN Options spoke with Matt Moran, vice president, business development for the CBOE, on the growth of the indexes since the BXM, the first and most well known options benchmark index, was introduced in 2002. The CBOE BXD index was up 7.9%, BXY 7.1%, PUT up 6.1% and BXM up 5.7%, compared to gains of only 2.5%…